Blog & Resources
Using a Partnership as a business / investment vehicle.
This involves two or more entities who agree to share the profits or losses of a business or investment. It is recommended that a partnership agreement be drafted stating what the responsibilities of each partner are.
- Not expensive to set up.
- Relatively easy to set up.
- There is an ability to split income.
- Losses can be carried forward or used to offset the respective partner's income.
- Small Business Tax Concessions are available.
- Relatively easy to dissolve.
- Limited external regulations / partners can keep their affairs private.
- Partners are joint and severally liable. No limited liability.
- Each partner is liable / responsible for the other partners actions.
- Less flexibility in distributions of income and capital.
- No asset protection.
- Partnership is not a separate legal entity and does not pay income tax; the tax is liable at the individual's level.
- Other taxes may apply i.e., Payroll Tax, Fringe Benefits Tax and GST.
- Transferring ownership may prove difficult as there will be a sale of business.
If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
Phone +61 3 9428 1062
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